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Check Bounce Protection – Is It An Artificial SanctuaryBy Rene TseAnother term for check bounce protection is courtesy overdraft. The idea is that under this protection, if you have insufficient funds in your bank account to cover a check, this check bounce security would prevent any of your checks from bouncing. A check bounce protection® plan is a short term extremely high interest loan or credit giving to you by your bank. Often times, the bank will add on this check bounce protection® without your authorization and you get a shocking bill at the end of the month and view your monthly statement this enormous fee you had to pay for the so called check bounce protection® service. The purpose of this article is enlighten you on : Which banks or bank truly have a bonafide check bounce protection® without you having to pay almost 800% in APR. What is the difference between overdraft protection and check bounce protection®: An overdraft protection plan will protect you when you having: INTERAC direct payment purchases, cheques, withdrawals and pre-authorized payments bounce due to insufficient funds in your account. Typically, most banks will charge the Prime interest rate PLUS (5% per annum) for the length of time until you have added the sufficient funds back in to your savings or checking account. Most banks will cover your bounced checks from $300 to $5000. The only bank that truly has a bonafid check bounce protection® is home national bank. I would recommend that you go to their website at: www.homenational.com. Or if you wish, you can call them toll free at 877.811.4663. This check bounce protection® service is only for Home National Bank checking customers. At Home National Bank, as long as you have an established eminence at the home national bank, you qualify for the check protecting special overdraft privilege. The truth of the situation is the many banks in the states advertise that the have a check bounce protection, however, if you look a lot closer, the APR that you will be paying for the bounce protection loan is somewhere in the range of 608.33 to 791% according to Mr. Howard Mason. Unfortunately, many banks will not tell you what the APR is on the check bounce protection plan. You see, with overdraft protection, your bounced checks can be sheltered by your credit cards if you have any or by your savings account. Below is a table I found at consumer reports showing that your check bounce protection® APR can exceed 700% APR!
Monitor Your Bank Account Balance: Mr. Jon Eberle, the chief financial officer at HMN Financial, the father company of Home Federal Savings Bank says, "It's a convenience. There's a price for convenience. We don't encourage you to bounce checks." That is obvious, no one including myself, make a habit of bouncing checks. Like all of us, there are many situations that occur
Depending on what type of checking account you have as a Home National Bank customer, below is a table of how much the check bounce protection® plan will cover.
We do recommend that even if you become a Home National Bank customer to pay off the overdraft amount as soon as possible. Therefore, you maintain a good standing with the bank. For example, if you have a low minimum interest checking account, and lets say your rent is only $450.00 as you live in Mesa, AZ in a bachelor apartment, and you don't have money to cover the rent at the end of the month, in this case the overdraft limit for your type of account is $500, and your rent check therefore will not bounce. IF you happen to live in a state that you can not bank at Home National Bank, a second alternative is to go to your local credit union to open up an account, it would still be cheaper than using the so called check bounce protection® at your bank. Plan of Action:What can you do so you don't have to absorb check protection fees?
I bank at a credit union, and since I have had a good standing with them for the last 6 years, one time, I had insufficient funds in my account, and automatically there was funds to cover it, so I avoided having a NSF check, they only charged me $5 for this service. See, if you can find a credit union close by, if you local bank won't assist you in this way. Recommended Reading :
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